PERFORMANCE STATISTICS TARGET LIFESTYLE STRATEGIES (DRAWDOWN) JULY 2018 The Portfolios shown below are the building blocks of our Target Drawdown Lifestyle Strategies. These strategies aim to deliver above inflation growth in the value of the fund at retirement, whilst taking a level of risk consistent with the chosen category. As you progress through our Target Lifestyle Strategies you will be invested in the Portfolios appropriate depending on your time to retirement. Your Lifestyle Journey Risk Category At 15 yrs + At 10 yrs At 5 yrs Retirement Cautious Portfolio 1 Portfolio 2 Portfolio 3 GRIP 1 Moderately Cautious Portfolio 4 Portfolio 5 Portfolio 3 GRIP 2 Balanced Portfolio 4 Portfolio 5 Portfolio 6 GRIP 3 Moderately Adventurous Portfolio 7 Portfolio 5 Portfolio 6 GRIP 4 Adventurous Portfolio 7 Portfolio 8 Portfolio 9 GRIP 5 The mix of assets held within each portfolio is reviewed regularly by our Investment Advisory Committee (IAC) as part of our governance process. For details of the latest asset allocations and minutes of the committee meetings, please refer to our website at royallondon.com/pensioninvestments. Investments Equity management options Each strategy invests the equity portion in an actively managed global equity fund, the RLP Global Managed fund. However there are alternative tracker and active equity management options if you prefer. Tracker funds, also known as passive funds, aim to perform in line with a market index such as the FTSE All Share index. They do this by investing in either all (full replication) or a representation (partial replication) of the index constituents. Tracker funds tend to be low cost as this replication is generally done automatically and does not require the same level of research as active management. Actively managed funds aim to outperform the market index by employing fund managers and research teams to make tactical decisions on which stocks or sectors to invest in. They tend to have higher charges than tracker funds in line with the extra resource required to run these funds. It should be remembered that a higher charge does not guarantee better returns.
Tracker the tracker version invests the equity portion of each portfolio in a global equity tracker fund, the RLP/BlackRock Aquila Global Blend fund. Active the active version invests the equity portion of each portfolio in an actively managed global equity fund of funds, the RLP Global Blend Core Plus (Rathbone Global Alpha) fund. The equity portion of each portfolio is invested 50% UK equities and 50% overseas equities. This allocation is reviewed regularly by our IAC. Each portfolio is rebalanced on a monthly basis. This is the process of making sure the asset mix of the investments is maintained following movements due to fund price changes. Performance for each of the options detailed is shown overleaf.
CAUTIOUS LIFESTYLE STRATEGY (known as drawdown) and have a cautious attitude to risk. Portfolio 1 6.65 13.00 5.07 8.63 10.27 8.18 8.69 Composite benchmark 6.07 11.32 7.95 7.39 9.66 8.42 8.46 Difference 0.58 1.68-2.88 1.24 0.61-0.24 0.23 Portfolio 2 (Drawdown) 5.40 11.02 5.48 8.14 9.10 7.26 7.80 Composite benchmark 4.86 9.42 7.79 7.31 8.50 7.33 7.56 Difference 0.54 1.60-2.31 0.83 0.60-0.07 0.24 Portfolio 3 (Drawdown) 2.69 6.23 5.39 6.09 6.22 4.75 5.31 Composite benchmark 2.01 5.01 6.51 6.08 5.46 4.49 5.00 Difference 0.68 1.22-1.12 0.01 0.76 0.26 0.31 GRIP 1 2.57 7.00 5.83 5.24 4.60 5.11 5.03 Composite benchmark 1.51 5.49 6.82 5.37 3.83 4.58 4.59 Difference 1.06 1.51-0.99-0.13 0.77 0.53 0.44 Cautious Tracker Lifestyle Strategy Portfolio 1 6.73 13.29 5.93 8.05 9.97 8.59 8.76 Portfolio 2 (Drawdown) 5.46 11.25 6.17 7.68 8.86 7.59 7.86 Portfolio 3 (Drawdown) 2.73 6.32 5.66 5.91 6.11 4.89 5.33 GRIP 1 2.60 7.05 6.00 N/A N/A 5.19 N/A Cautious Active Lifestyle Strategy Portfolio 1 7.25 14.39 2.33 9.88 11.27 7.87 8.94 Portfolio 2 (Drawdown) 5.88 12.11 3.28 9.12 9.86 7.02 8.00 Portfolio 3 (Drawdown) 2.89 6.66 4.42 6.48 6.49 4.64 5.37 GRIP 1 2.73 7.26 5.28 N/A N/A 5.07 N/A Source: Lipper, bid to bid, as at 30.06.2018, Royal London, as at 30.06.2018. All performance figures, including the figures fund. Please note that the Portfolios and their benchmarks are rebalanced on a monthly basis. This is the process
MODERATELY CAUTIOUS LIFESTYLE STRATEGY (known as drawdown) and have a moderately cautious attitude to risk. Portfolio 4 7.73 15.61 4.17 8.51 10.91 9.06 9.32 Composite benchmark 7.24 13.68 7.21 6.94 10.25 9.33 9.03 Difference 0.49 1.93-3.04 1.57 0.66-0.27 0.29 Portfolio 5 (Drawdown) 6.65 13.47 4.68 8.16 10.10 8.19 8.57 Composite benchmark 6.05 11.64 7.44 6.98 9.33 8.34 8.27 Difference 0.60 1.83-2.76 1.18 0.77-0.15 0.30 Portfolio 3 (Drawdown) 2.69 6.23 5.39 6.09 6.22 4.75 5.31 Composite benchmark 2.01 5.01 6.51 6.08 5.46 4.49 5.00 Difference 0.68 1.22-1.12 0.01 0.76 0.26 0.31 GRIP 2 3.46 9.44 5.51 5.82 6.81 6.10 6.19 Composite Benchmark 2.32 7.05 7.10 5.62 5.71 5.46 5.54 Difference 1.14 2.39-1.59 0.20 1.10 0.64 0.65 Moderately Cautious Tracker Lifestyle Strategy Portfolio 4 7.82 15.98 5.19 7.80 10.56 9.56 9.40 Portfolio 5 (Drawdown) 6.73 13.77 5.53 7.58 9.80 8.61 8.64 Portfolio 3 (Drawdown) 2.73 6.32 5.66 5.91 6.11 4.89 5.33 GRIP 2 3.51 9.53 5.79 N/A N/A 6.24 N/A Moderately Cautious Active Lifestyle Strategy Portfolio 4 8.48 17.39 0.94 10.02 12.13 8.72 9.66 Portfolio 5 (Drawdown) 7.28 14.91 1.95 9.41 11.08 7.91 8.83 Portfolio 3 (Drawdown) 2.89 6.66 4.42 6.48 6.49 4.64 5.37 GRIP 2 3.74 9.84 4.57 N/A N/A 6.01 N/A Source: Lipper, bid to bid, as at 30.06.2018, Royal London, as at 30.06.2018. All performance figures, including the figures fund. Please note that the Portfolios and their benchmarks are rebalanced on a monthly basis. This is the process
BALANCED LIFESTYLE STRATEGY (known as drawdown) and have a balanced attitude to risk. Portfolio 4 7.73 15.61 4.17 8.51 10.91 9.06 9.32 Composite benchmark 7.24 13.68 7.21 6.94 10.25 9.33 9.03 Difference 0.49 1.93-3.04 1.57 0.66-0.27 0.29 Portfolio 5 (Drawdown) 6.65 13.47 4.68 8.16 10.10 8.19 8.57 Composite benchmark 6.05 11.64 7.44 6.98 9.33 8.34 8.27 Difference 0.60 1.83-2.76 1.18 0.77-0.15 0.30 Portfolio 6 (Drawdown) 4.59 8.94 5.08 6.34 7.62 6.18 6.50 Composite benchmark 3.99 7.50 6.48 5.96 6.68 5.97 6.11 Difference 0.60 1.44-1.40 0.38 0.94 0.21 0.39 GRIP 3 4.18 11.83 5.28 6.42 9.17 7.04 7.33 Composite Benchmark 2.92 8.51 7.37 5.91 7.69 6.24 6.46 Difference 1.26 3.32-2.09 0.51 1.48 0.80 0.87 Balanced Tracker Lifestyle Strategy Portfolio 4 7.82 15.98 5.19 7.80 10.56 9.56 9.40 Portfolio 5 (Drawdown) 6.73 13.77 5.53 7.58 9.80 8.61 8.64 Portfolio 6 (Drawdown) 4.64 9.12 5.57 6.02 7.43 6.42 6.54 GRIP 3 4.25 11.96 5.67 N/A N/A 7.23 N/A Balanced Active Lifestyle Strategy Portfolio 4 8.48 17.39 0.94 10.02 12.13 8.72 9.66 Portfolio 5 (Drawdown) 7.28 14.91 1.95 9.41 11.08 7.91 8.83 Portfolio 6 (Drawdown) 4.96 9.78 3.45 7.04 8.13 6.03 6.65 GRIP 3 4.57 12.46 4.02 N/A N/A 6.94 N/A Source: Lipper, bid to bid, as at 30.06.2018, Royal London, as at30.06.2018. All performance figures, including the figures fund. Please note that the Portfolios and their benchmarks are rebalanced on a monthly basis. This is the process
MODERATELY ADVENTUROUS LIFESTYLE STRATEGY (known as drawdown) and have a moderately adventurous attitude to risk. Portfolio 7 7.99 17.49 3.66 8.33 11.46 9.55 9.69 Composite benchmark 8.06 15.95 6.35 6.38 11.05 10.03 9.49 Difference -0.07 1.54-2.69 1.95 0.41-0.48 0.20 Portfolio 5 (Drawdown) 6.65 13.47 4.68 8.16 10.10 8.19 8.57 Composite benchmark 6.05 11.64 7.44 6.98 9.33 8.34 8.27 Difference 0.60 1.83-2.76 1.18 0.77-0.15 0.30 Portfolio 6 (Drawdown) 4.59 8.94 5.08 6.34 7.62 6.18 6.50 Composite benchmark 3.99 7.50 6.48 5.96 6.68 5.97 6.11 Difference 0.60 1.44-1.40 0.38 0.94 0.21 0.39 GRIP 4 5.35 14.63 4.60 6.90 11.37 8.09 8.50 Composite Benchmark 3.96 10.75 7.44 6.03 9.68 7.34 7.54 Difference 1.39 3.88-2.84 0.87 1.69 0.75 0.96 Moderately Adventurous Tracker Lifestyle Strategy Portfolio 7 8.07 17.91 4.83 7.51 11.04 10.12 9.77 Portfolio 5 (Drawdown) 6.73 13.77 5.53 7.58 9.80 8.61 8.64 Portfolio 6 (Drawdown) 4.64 9.12 5.57 6.02 7.43 6.42 6.54 GRIP 4 5.43 14.83 5.16 N/A N/A 8.37 N/A Moderately Adventurous Active Lifestyle Strategy Portfolio 7 8.83 19.50 0.09 10.09 12.94 9.18 10.10 Portfolio 5 (Drawdown) 7.28 14.91 1.95 9.41 11.08 7.91 8.83 Portfolio 6 (Drawdown) 4.96 9.78 3.45 7.04 8.13 6.03 6.65 GRIP 4 5.85 15.56 2.83 N/A N/A 7.94 N/A Source: Lipper, bid to bid, as at 30.06.2018, Royal London, as at 30.06.2018. All performance figures, including the figures fund. Please note that the Portfolios and their benchmarks are rebalanced on a monthly basis. This is the process
ADVENTUROUS LIFESTYLE STRATEGY (known as drawdown) and have an adventurous attitude to risk. Portfolio 7 7.99 17.49 3.66 8.33 11.46 9.55 9.69 Composite benchmark 8.06 15.95 6.35 6.38 11.05 10.03 9.49 Difference -0.07 1.54-2.69 1.95 0.41-0.48 0.20 Portfolio 8 (Drawdown) 7.74 16.14 3.98 8.20 10.66 9.16 9.26 Composite benchmark 7.24 14.04 6.95 6.61 10.09 9.35 8.95 Difference 0.50 2.10-2.97 1.59 0.57-0.19 0.31 Portfolio 9 (Drawdown) 5.36 11.34 4.63 6.93 8.37 7.07 7.30 Composite benchmark 4.82 9.64 6.73 6.08 7.58 7.04 6.96 Difference 0.54 1.70-2.10 0.85 0.79 0.03 0.34 GRIP 5 6.55 17.27 3.50 6.86 11.81 8.94 9.09 Composite Benchmark 5.20 13.38 6.84 5.66 10.29 8.41 8.22 Difference 1.35 3.89-3.34 1.20 1.52 0.53 0.87 Adventurous Tracker Lifestyle Strategy Portfolio 7 8.07 17.91 4.83 7.51 11.04 10.12 9.77 Portfolio 8 (Drawdown) 7.82 16.53 5.03 7.48 10.29 9.68 9.36 Portfolio 9 (Drawdown) 5.43 11.59 5.33 6.46 8.10 7.40 7.35 GRIP 5 6.62 17.56 4.30 N/A N/A 9.34 N/A Adventurous Active Lifestyle Strategy Portfolio 7 8.83 19.50 0.09 10.09 12.94 9.18 10.10 Portfolio 8 (Drawdown) 8.51 17.99 0.64 9.75 11.91 8.81 9.61 Portfolio 9 (Drawdown) 5.87 12.50 2.38 7.93 9.13 6.83 7.50 GRIP 5 7.11 18.67 0.97 N/A N/A 8.67 N/A Source: Lipper, bid to bid, as at 30.06.2018, Royal London, as at 30.06.2018. All performance figures, including the figures fund. Please note that the Portfolios and their benchmarks are rebalanced on a monthly basis. This is the process
Royal London 1 Thistle Street, Edinburgh EH2 1DG royallondon.com All literature about products that carry the Royal London brand is available in large print format on request to the Marketing Department at Royal London, 1 Thistle Street, Edinburgh EH2 1DG. All of our printed products are produced on stock which is from FSC certified forests. Source: FTSE International Limited ( FTSE ) FTSE 2016. FTSE is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Marketing Limited is authorised and regulated by the Financial Conduct Authority and introduces Royal London s customers to other insurance companies. The firm is on the Financial Services Register, registration number 302391. Registered in England and Wales number 4414137. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Corporate Pension Services Limited is authorised and regulated by the Financial Conduct Authority and provides pension services. The firm is on the Financial Services Register, registration number 460304. Registered in England and Wales number 5817049. Registered office: 55 Gracechurch Street, London, EC3V 0RL. July 2018 Target (Drawdown) July 2018